This research work was undertaken to examine the impact of taxation as a tool of fiscal policy. The study is aimed at putting together those factors that constitute those variables which the government uses to manipulate the economy. The source of data to this research work are both from gathered from Secondary data, which is from various text books, internet materials and primary data through the use of questionnaires that was filled by various respondent. The result of the research shows that in this country, a great proportion of government revenue, which should have been proportion of government revenue, which should have been generated from taxation, are lost through an ineffective system of tax administration. Hence, making it difficult for taxation to be used as a tool of fiscal policies. Effective tax administration should be put in place to ensure that everybody is brought to the tax net. They should be transparency in the part of the government in providing the social amenities to the populate to encourage people to pay their tax.
1.1 Introduction
In this section, the Impact of Taxation as a Tool of Fiscal Policy in Nigeria is discussed, with relevant and recent citations. As a prelude to other parts of this study, this chapter will discuss the background upon which this study was initiated, the statement of problems that led to this study, the aim and objectives of the study. Others are significance of the study, scope of work, research hypothesis and questions, limitation of the study and definition of terms.